The Business Times reported that the launches of the new Toyota Corolla Altis, Mazda3 and Honda City next year are likely to keep the Cat A COE premium relatively buoyant despite the exit of luxury models, which had been blamed for pushing up prices. Still, most dealers foresee at least a 10 to 15 percent fall from current COE levels.

"Next February should see the return of bread-and-butter models from those Japanese and Korean brands which have been priced out of Cat A for over two years. There are many prospective upgraders who have been waiting on the sidelines because of high car prices and they should be returning to the market next year," said the sales manager of a mass-market dealership.

The all new Toyota Corolla Altis will be a bigger and more refined model than the current one, which costs about $120,000 now. The exterior looks like the present Camry mid-sized sedan, while the brand new interior is said to be very roomy because its wheelbase has been lengthened by 100mm to 2,700mm. The 1.6-litre engine is mated to a seven-step continuously variable transmission instead of the old four-speed automatic gearbox.

The Thai-made Altis has traditionally been Toyota's best-selling model here. It was the Republic's most popular model from 2002 to 2006. After dropping out in 2007, it remained in the top three until after 2010 as the COE quota contracted substantially.

The new Mazda3 is slated to arrive in the first quarter of 2014 from Japan. This 1.5-litre model will feature the familiar SkyActiv technology, which combines efficient engines with a smooth transmission in a lightweight but strong body.

As for the new Honda City, it is scheduled for a Q2 introduction here. It has a new platform and new continuously variable transmission (from a five-speed auto previously) but retains its existing 1.5-litre engine.